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Stock impact report

Blue Owl Capital: Solid 9.8% Yield, But Risks Are Up (Downgrade) [Seeking Alpha]

Blue Owl Capital Inc. Class A (OWL) 
Company Research Source: Seeking Alpha
The company saw a decline in portfolio quality in the second quarter, leading to a downgrade to hold. Despite the decline in credit quality, OBDC reported an increase in net asset value and is trading at a discount to NAV. Blue Owl Capital Corporation ( NYSE: OBDC is a well-managed business development company for which I see considerable dividend upside, particularly with respect to its regular dividend rate. Blue Owl Capital saw a huge improvement in its dividend coverage ratio in the second quarter, driven by an ongoing increase in the BDC's net interest margin, and the BDC posted a QoQ increase in its net asset value despite paying a supplemental dividend. Unfortunately, Blue Owl Capital suffered an increase in non-accruals. Though I think that Blue Owl Capital could raise its dividend as well as its supplemental dividend to distribute excess portfolio income, the deterioration in credit quality leads me to lower my stock classification to hold. My Rating History As a Show less Read more
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